Indiana lawmakers are pushing forward with new legislation aimed at curbing online sweepstakes casinos, as US states step up efforts to rein in a fast-growing but lightly regulated segment of the gambling market.
Reportedly, Representative Ethan Manning introduced House Bill 1052, which targets so-called dual-currency sweepstakes platforms, which offer casino-style games while operating outside traditional gambling licences. These platforms typically allow players to buy one form of virtual currency to access games, while a second currency can be redeemed for cash prizes.
Manning argues that the sweepstakes structure mirrors real-money gambling and enables operators to sidestep existing regulatory frameworks. Under the proposed legislation, operators who knowingly run sweepstakes casinos in Indiana, or facilitate transactions involving state residents, could face civil penalties of up to $100,000.
The bill also creates new grounds for regulators to suspend or deny licences, significantly raising the stakes for companies operating across multiple gambling verticals. The move would effectively limit online gambling in Indiana to fully licenced and regulated casinos only.
The scope of oversight would expand beyond sweepstakes activity alone. Indiana’s horse racing commission and gaming regulators would gain broader disciplinary powers, allowing stewards and judges to issue sanctions, fines, and suspensions when state rules are breached. Enforcement would be led by the Indiana Gaming Commission, supported by law enforcement agencies.
Additional measures for responsible gaming
Alongside its sweepstakes provisions, HB 1052 includes a notable responsible-gambling measure. The bill proposes expanding Indiana’s voluntary self-exclusion programme to cover sportsbook wagering certificate holders, bringing online sports betting formally into the scheme.
If approved, individuals would be able to register on a confidential self-exclusion list maintained by the commission. Once enrolled, participants would be barred from entering gambling venues under the commission’s authority or placing wagers with licensed sportsbooks. Operators would also be required to halt direct marketing and would be prohibited from extending credit or cashing cheques for excluded individuals.
Indiana’s move comes amid growing national scrutiny of sweepstakes casinos. In Maine, lawmakers recently introduced legislation that would classify sweepstakes platforms as civil violations, with fines ranging from $10,000 to $100,000. As debate continues, consumer interest in mobile gambling remains strong, with many players seeking regulated options such as the best mobile online casinos highlighted by industry observers.
Move comes after New York’s push
New York has taken a firmer stance. Governor Kathy Hochul has signed Senate Bill S05935A into law, effectively banning dual-currency sweepstakes casino games across the state. The legislation also prevents licensed gaming operators from promoting sweepstakes-style products, with enforcement shared between the state’s Gaming Commission, Attorney General, and State Police.
The New York ban followed swift legislative action. The bill passed the State Senate in June before being approved unanimously by the State Assembly less than a week later. Although it cleared both chambers in mid-2025, it was formally delivered to the governor’s desk in December.
The state’s crackdown was also driven by the state’s Attorney General, Letitia James, who has argued that sweepstakes casinos violate constitutional definitions of gambling. In March, her office issued cease-and-desist letters asserting that the purchase of virtual coins constitutes “something of value” under state law. By June, letters had been sent to 26 sweepstakes casino operators.
With states including California, Connecticut, Montana, Nevada, and New Jersey also tightening restrictions in 2025, regulators across the US appear increasingly determined to close what they see as a regulatory grey area, and to bring sweepstakes casinos firmly within the bounds of gambling law.
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